By Jeff Wuorio, MSN MoneyMost families face challenges in paying for college. Some seem to spring out of thin air. Others we bring upon ourselves, by way of ignorance or inattention.
Mike and Kathie Rauth didn't exactly stick their heads into the sand. The way the kids kept coming -- well, that's another matter.
The couple, from Scarborough, Maine, have saved some $250,000 in mutual funds and stocks over the past 20 years or so. They'll need every penny, however, what with a veritable conga line of college students coming along.
In fact, the dance has already begun.
Twenty-one-year-old Elissa is a junior at St. Anselm College in New Hampshire, and Brendan, 19, is a freshman at Stonehill College in Massachusetts. Still to come are Aaron, 17, and his brother Devon, 13.
Faced with two sets of private-college bills (total annual cost: some $74,000) and anticipating two more in the near future, the Rauths have already taken out a second mortgage on their home. 
Video: No financial road map
"We agreed with the kids that we would pay half of their college bills," says Mike, 47, an engineer.
"The ironic thing is, between scholarships and work, Elissa has her half paid for the year -- we're the ones taking out the loan." Video: Who should pay for college?
Even in smaller families, insufficient planning or budget constraints can leave parents at a loss when faced with looming college bills. At this point, parents and kids often have to sit down together to come up with a solution.
In the Rauths' case, the partnering spirit of the kids has been critical. As Mike explains, he and Kathie are committed to paying half of all four kids' college costs. But to make that approach work, the kids have to come through, too. And thanks to merit scholarships, on-campus jobs and other sources, both Elissa and Brendan are holding up their end of the bargain. Video: It's my responsibility
It's a solid approach -- one the family needs to maintain with Aaron and Devon.
Ray Loewe of College Money in Marlton, N.J., urges that the younger Rauth siblings start their college search as soon as possible. He suggests that they focus on packaging themselves attractively and targeting schools that are optimal academic and financial fits, rather than focusing purely on the appeal of a
particular school and hoping that the funding somehow falls into place.
The Rauths "should challenge (the kids) to start right now to find the right college," says Loewe. "Kids can get very creative if you throw down the gauntlet the right way." Calculator: How much can you save?
If you're in the Rauths' situation -- with several kids and several college bills to juggle -- consider these steps:
Start researching schools -- now: "Pick 10 or 12 schools where they're going to be in the top 25% academically in the incoming class," says Loewe. "That way, they can focus on obtaining merit scholarships. With their situation, they're not likely to get anything need-based."
Have the kids contact financial aid officers: "Tell them 'I'm really interested in attending your school, and here's the deal I have with my parents. What can you do to help me?' " Loewe says.
Build a "portfolio": Loewe recommends that Aaron and Devon both begin compiling a college "résumé" -- a detailed profile highlighting not only academic accomplishments, but also special skills, activities or
achievements that might make them particularly attractive to prospective schools: "If they package themselves to be attractive to schools, the schools won't want to lose them -- and that means they'll find the money to have them attend."
Boost SAT scores: Test preparation services are effective in boosting SAT performance -- and, in so doing, making students that much more attractive to schools. Marymount Manhattan College offers $6,000 in aid to freshmen whose SATs top 1,150 and who maintain at least a 3.0 grade point average.
Gift some available funds: The Rauths may also wish to consider gifting available funds to Brendan, Aaron and Devon -- ideally, into 529 plans. The funds would not impact financial aid and would offer their parents potential tax breaks.
Look for alternate payment programs to help with cash flow: A hefty college bill doesn't necessarily mean one or two huge payments. The Rauths should consider schools that offer installment programs that let them spread payments out over the course of the year. Spreading out payments not only eases the pain, it can keep funds invested longer to produce better returns. Of course, every family is different. For some,
the challenge is a conga line of kids. For others, it's waiting too long to start saving. A recent survey by Academic Management Services found that 57% of parents waited until their child was in high school before looking into ways of paying for a college education.
If your family waited too long, here are some suggestions that may help you make up for lost time.
Be particularly aggressive in looking for the right schools: Colleges differ as to the sort of student they're looking for as well as the parameters they apply in awarding financial aid. Start looking for schools whose needs match up well with your child's strengths; keep an eye out for sports programs, extracurriculars or even just interest in students with particular backgrounds or geographic locations.
Talk to the boss: Scholarships and grants come from all sorts of sources. Michael Burke of American Education Services, a financial-aid services organization, points out that employers often offer tuition assistance programs -- low-cost loans, outright grants or both -- for employees' children.
Shoot for the last two years: If your savings are paltry, it's likely that your child's initial years in college will require plenty of assistance from other sources --
loans, scholarships and work/study, among them. But that doesn't mean that you should forgo saving. Rather, look to put aside as much as you can for your kid's junior and senior years.
Consider community college: If procrastination has put a conventional four-year college out of reach, consider starting with a year or two at a community college. Tuition costs are considerably lower, and your child can get a feel for whether college is, in fact, the right choice. Meanwhile, the lighter financial burden gives you additional time to save. Look for credits that would be transferable so your child can finish a four-year degree elsewhere without having to repeat courses.
Produced by Elizabeth Daza/Graphics by Hakan Isik and Joe Farro
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